Upon a company being placed into insolvency – either administration or liquidation – there arise a number of claims which may be brought against
- former directors;
- their partners / spouses;
- family members;
- associates; or
- any third party for recovery of sums that may have been paid to them prior to the commencement of the Insolvency Proceedings.
These claims can be quite serious may lead to what was an innocent transaction being repayable by you to the company, together with interest and legal costs. These innocent transactions can include any payments made to creditors (whether or not they are associated to the company) through to salaries taken by directors or their family members. At the time of the transaction it may seem innocent enough but the consequences of such transactions after the appointment of an administrator or liquidator can be severe.
This could lead to the loss of your possessions, which usually comprises your home, and in the worst case scenario, bankruptcy. At Francis Wilks & Jones, we can advise you on your duties as a director, planning to avoid such claims and, in the event you face such risks, defending such claims to avoid unwanted losses.
The most important factors which dictates whether you have a valid defence can be found by following the links listed below
- considerations when faced by an insolvency claim;
- types of claim against directors;
- types of claim against spouses and friends.
Our specialist team is here to help you. Call for your consultation now. Alternatively e mail us with your enquiry and we will call you back at a time convenient for you.